Mini apartments are granted pink books; Novaland needs 2 more years to pay off debt
Income of no more than 15 million VND/month is eligible to buy social housing; Ho Chi Minh City has not applied the adjusted land price list; The "big guy" of social housing has a net profit in the second quarter of 2024 that increased 8.4 times.
That's some of the real estate news highlights from the past week.
Income not exceeding 15 million VND/month can buy social housing
Recently, the Government issued Decree 100/2024/ND-CP detailing a number of articles of the Housing Law on the development and management of social housing. Accordingly, the Decree has relaxed income conditions for people who want to rent or buy houses in this segment.
According to current regulations, one of the conditions to enjoy social housing policies is that all family members must have regular income that does not have to pay personal income tax - that is, no more than 11 million VND/month.
However, from August 1, when Decree 100/2024/ND-CP takes effect, workers with a net income of no more than VND 15 million/month will still be able to rent or buy social housing. In the case of marriage, the condition for renting or buying this type of house is that the couple has a maximum income of VND 30 million/month.
The period for determining income is within one consecutive year, calculated from the time of submitting the registration application. Previously, the period for considering income was 3 years.
In addition, the new decree has also removed the requirement that households must have a household registration or temporary residence registration when registering to rent or buy social housing in localities. Instead, the spouse of the registrant only needs to not have their name on the certificate of house and land ownership in the locality where the project is located.
Mini apartment has been granted pink book
The Housing Law 2023 has come into effect since August 1. Now, the new regulation allows for the issuance of certificates for each apartment in multi-storey multi-apartment buildings, also known as mini-apartments.
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| The conditions for mini apartments to be granted pink books are not simple. Photo: Thanh Vu |
At the same time, Decree 95/2024/ND-CP has also taken effect, officially "tightening" the conditions for investing in the construction of mini apartments.
Accordingly, in the case of multi-storey houses with many apartments (with 2 floors or more) designed and built for sale/lease or with a scale of 20 apartments or more, the investor must carry out investment procedures for construction of housing projects according to the provisions of law.
This means that investors must meet the conditions for housing project investors such as establishing a business, meeting financial capacity conditions, etc.
Notably, the handover of apartments will only be carried out when the investor has completed the acceptance of the housing project and the acceptance of the technical infrastructure of the area.
For projects with less than 20 apartments, the rooms will only be used for rent. In addition, construction must still comply with regulations on the construction of individual houses, including requirements on design, construction design review, construction permit issuance, management, fire safety requirements, etc.
Ho Chi Minh City has not applied the adjusted land price list yet.
On August 1, at a meeting on the socio-economic situation of Ho Chi Minh City, Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment of Ho Chi Minh City, said that the land price list that has caused a stir in public opinion recently is an adjusted price list, not a new land price list according to the 2024 Land Law.
“The new land price list will be developed and applied from January 1, 2026. The current adjusted price list is to update current land transaction prices, approved compensation prices, and specific market prices, to ensure no loss in the context of the old price list being too low,” emphasized the leader of the Ho Chi Minh City Department of Natural Resources and Environment.
Mr. Thang gave an example, if calculated according to the current price list, the land price on some roads is only about 1-2 million VND/m2. Meanwhile, the actual transaction is up to 100-200 million VND/m2. Therefore, the city needs to re-adjust to make the land price list more appropriate and accurate.
At the end of this year, the management agency will review the price list to ensure that the content is consistent with the economic situation. If approved by the City People's Committee, the adjusted land price list will be used until the end of 2025.
Ho Chi Minh City has completely removed legal obstacles for 5 real estate projects.
Recently, the Ho Chi Minh City People's Committee reported to the Ministry of Construction on the progress of resolving legal procedural problems of 64 real estate projects in the city.
Accordingly, 5 projects have been completely resolved and 25 projects are being consulted by departments and branches for handling according to their authority.
Specifically, the five projects that were removed include: The Metropole Thu Thiem project of Quoc Loc Phat JSC; social housing area of VTHouse JSC and Tam Giao JSC.
Project of Suntory Pepsico Vietnam Beverage Company Limited; Metro Star apartment and commercial complex of Metro Star Investment JSC; Celadon City project of Gamuda Land JSC.
Me Linh seeks investors for 2 new urban areas
Recently, the Hanoi Department of Planning and Investment has issued a notice inviting interested investors to submit applications to implement the Dai Thinh new urban area in Me Linh and Dai Thinh communes.
The project has a total investment of nearly 2,615 billion VND. The land use scale is about 34.44 hectares. It is expected to be home to about 3,000 people.
According to the plan, the urban area will include 164 low-rise houses with a height of about 3-5 floors; a 20-storey apartment, commercial and office building with about 390 apartments; a 6-storey social housing building with 261 apartments...
The investment project's duration is 50 years. The project implementation progress lasts from 2024 to 2028.
Previously, the Hanoi Department of Planning and Investment also announced the search for investors for the new urban area of Me Linh. The project has a scale of more than 40 hectares and is located in two communes of Me Linh and Van Khe.
The project has a total investment of more than 3,200 billion VND. When completed, this will become a place of residence for about 5,000 people.
The new urban area is expected to have nearly 700 low-rise apartments (townhouses, villas, shophouses...) 3-5 stories high; a 10-story social housing building with more than 800 apartments; 2 commercial service buildings 3-9 stories high...
Similar to Dai Thinh urban area, the operation period of this investment project is 50 years. Implementation progress is from 2024 - 2028.
Novaland needs 2 more years to pay off debt
In a restructuring report meeting on July 30, Mr. Duong Van Bac, Chief Financial Officer of Novaland (NVL), said that the company plans to pay off all loans and bonds from the first or second quarter of 2026.
Explaining more clearly about the above time, Mr. Bac said that from now until the second quarter of 2025, the company will not focus on selling new products but will focus all resources on completing legal procedures to handing over and collecting money for sold products.
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| If Aqua City's legal issues are resolved, Novaland will complete 90% of the restructuring process. Photo: VGP |
This is also NVL's key task in completing the restructuring work. According to the company's estimates, for projects under implementation, receivables amount to more than VND100,000 billion, while debt on the balance sheet is only about VND60,000 billion.
From now until the end of the year, NVL plans to complete legal procedures at three projects in Ho Chi Minh City including Victoria Village, The Grand Manhattan and Park Avenue.
For the Aqua City project (Dong Nai), the company plans to complete the local adjustment of the general planning of Bien Hoa City, area C4 and part of the urban area west of Bien Hoa - Vung Tau highway in early August 2024.
Meanwhile, NovaWorld Ho Tram (Ba Ria - Vung Tau) will complete the legal procedures for three subdivisions: Binh Chau Onsen, Happy Beach and Long Island from August to December 2024.
NovaWorld Phan Thiet (Binh Thuan) has two main problems: determining land prices and changing the land lease form from annual payment to one-time payment. The company said that when the 2024 Land Law comes into effect, the project will soon have specific land prices determined as the basis for calculating land rent. The project can receive a construction permit in October this year.
If the above legal completion roadmap is followed, Novaland will hand over 2,580 more properties from now until the end of the year.
In terms of cash flow, Aqua City and NovaWorld Phan Thiet are the company’s two most important project clusters. According to Mr. Bac, if Aqua City’s legal issues are resolved, Novaland will complete 90% of the restructuring process.
Regarding the business picture, at the end of the first 6 months of the year, Novaland's consolidated revenue reached 7,065 billion VND, coming from sales, service provision and financial activities; after-tax profit was nearly 345 billion VND.
Of which, net revenue from sales reached nearly VND 1,891 billion, up 37% over the same period last year, recorded from the handover of products at projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City (HCMC)...
Coteccons net profit increased by 343%
Coteccons Construction Joint Stock Company (CTD) has announced its business results for the fourth quarter of the 2023-2024 fiscal year (April 1-June 30). Accordingly, the company's net revenue increased by 82% over the same period, nearly reaching VND6,600 billion. Net profit reached VND59 billion, nearly double that of last year.
If we consider the cumulative fiscal year 2024 (from July 1, 2023 to June 30, 2024), CTD's net revenue reached VND 21,045 billion, an increase of more than 30% over the same period. The company's after-tax profit even increased by 343%, reaching VND 299.5 billion, marking the highest net profit in the past 4 years.
Compared with the newly adjusted business plan, the company has completed 105% of the revenue target and 104% of the profit target.
In fiscal year 2024, the company will have a bid value of VND22,000 billion, mostly from the "repeat sales" strategy - winning bid projects designated by previous investors.
In addition, Coteccons has also been assigned many important projects by many new investors such as Pandora's factory in Binh Duong, Suntory PepsiCo factory in Long An, Eaton Park residential area in Ho Chi Minh City of Gamuda Land, Sembcorp Logistics Park Thuy Nguyen project in VSIP Hai Phong industrial park...
However, Coteccons is facing the problem of bad debt. Currently, the company is unable to recover VND483 billion from Ngoi Sao Viet Real Estate Investment Company Limited; VND142 billion from Saigon Glory; VND121 billion from Minh Viet Investment JSC. In addition, nearly VND1,500 billion from other partners is only 59% recoverable.
Social housing giant's net profit in Q2/2024 increased 8.4 times
According to the consolidated financial report for the second quarter of 2024, Hoang Quan Real Estate Consulting - Trading - Services JSC (HQC) had sales and service revenue of nearly VND 321 billion. However, due to returned goods, net revenue was only over VND 5 billion.
However, with the cost of goods sold refunded by nearly 48 billion VND, HQC's gross profit still reached nearly 53 billion VND.
After deducting expenses, this social housing giant earned a net profit of nearly VND11 billion. This is the highest result the company has achieved in 20 quarters, since the second quarter of 2019.
In the first 6 months, HQC recorded net revenue of VND18.5 billion and after-tax profit of VND12.56 billion. Although it has grown, this figure is still far from the plan in the shareholders' meeting. Accordingly, the company's revenue and profit targets for the whole year are VND2,000 billion and VND100 billion, respectively.
Recently, Hoang Quan has poured more than 1,700 billion VND into the HQC Tan Huong social housing project (Tien Giang), Tra Vinh new urban area, Golden City social housing and Grandora Tower (HCMC). The company expects the above 4 projects to contribute 950 billion VND to revenue in 2024.
Previously, HQC surprised everyone when it signed a strategic cooperation agreement with Novaland to invest in building social housing projects. This partnership is expected to provide 3,000 apartments in the near future in Ho Chi Minh City, Binh Thuan, Dong Nai, Binh Duong, Long An, etc.
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